Perth Mint gold in demand as price surges
With the gold price passing through the US 4,000/AUD 6,000 per ounce barrier for the first time, marking a historic milestone for the precious metal, investor demand has never been stronger at The Perth Mint.
The Mint’s retail shop has seen unprecedented activity from both buyers and sellers seeking to capitalise on the record price. Customers have been waiting patiently outside the gates ahead of the 9am opening.
To keep pace, The Perth Mint has expanded its bullion service area, adding four temporary counters in its luxury jewellery store and is hiring additional staff to manage the surge in customer applications to trade.
Visitor numbers to The Perth Mint have jumped alongside demand, rising from an average of 5,000 per week to more than 9,000 last week.
While, historically, high prices have dampened retail demand The Perth Mint’s General Manager Retail, Tina Kircher, has found the opposite to be true this time.
“Traditionally, as gold prices climb, we see retail investors hesitate to buy,” Mrs Kircher said.
“But this time, customers are undeterred.
“People are buying gold as both a safe haven and a long-term store of value.”
“And while the queues are testament to the strength of investor confidence, we strongly encourage customers to consider our ‘click and collect’ option for greater convenience.”
Rising demand is reflected in sales of The Perth Mint’s minted products, with September sales of gold coins and minted bars up 21% on the previous month and 11% over three months. Silver sales were up 36% in September and 25% over three months.
The Perth Mint’s General Manager Minted Products, Neil Vance, said strong interest in the new Australian Lunar Series Year of the Horse coins helped drive the result.
“And we’re also seeing very strong demand out of the US for our minted bars,” he said.
Investor interest extends beyond physical bullion, with strong inflows into gold-backed exchange-traded funds globally and The Perth Mint’s ASX-listed PMGOLD is no exception.
From 1 January to 30 September:
- The number of PMGOLD unit holders increased 72%
- The ounces of gold held in the product rose 23% to 338,572 ounces (10.53 tonnes)
- The PMGOLD unit price rose nearly 40%, from $41.78 to $58.35
The Perth Mint Treasurer, Sawan Tanna, says PMGOLD offers investors an accessible, low-cost way to gain exposure to gold through a simple stockbroking account.
“Our ETP is backed by physical gold stored securely at The Perth Mint, and investors can even convert their holdings into physical bullion if they wish,” Mr Tanna said.
“The growth we’ve seen this year underscores gold’s enduring appeal across all types of investors.”
